12 companies fulfilled these criteria. Only two of them came from the drug manufacturing industry, the industry with the highest dividend yield. Roughly 42% originate from the medical instruments and supplies industry. Unfortunately, most of the companies were very small and they had a market capitalization of less than $300 million. The high growth was explainable with the small size and led to higher risks. I like to focus only on stocks with a market capitalization above $2 billion. These are the results:
1. Dr. Reddy's Laboratorires (RDY) has a market capitalization of $5.07 billion. The company employs 14,923 people, generates revenues of $1,439.17 million and has a net income of $212.72 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $323.26 million. Because of these figures, the EBITDA margin is 22.46% (operating margin16.91% and the net profit margin finally 14.78%).
The total debt representing 24.81% of the company’s assets and the total debt in relation to the equity amounts to 51.25%. Due to the financial situation, the return on equity amounts to 24.84%. Finally, earnings per share amounts to $1.33 of which $0.22 were paid in form of dividends to shareholders last fiscal. Earnings are expected to grow by 22.95% for the next five years.
Here are the price ratios of the company: The P/E ratio is 22.53, P/S 3.62 and P/B ratio 5.79. Dividend Yield: 0.84%. The beta ratio is 1.08.
2. Pharmaceutical Products (PPDI) has a market capitalization of $3.78 billion. The company employs 11,000 people, generates revenues of $1,470.57 million and has a net income of $127.33 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $247.55 million. Because of these figures, the EBITDA margin is 16.83% (operating margin12.41% and the net profit margin finally 8.66%).
The total debt representing 0.00% of the company’s assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, the return on equity amounts to 9.72%. Finally, earnings per share amounts to $1.43 of which $0.60 were paid in form of dividends to shareholders last fiscal. Earnings are expected to grow by 16.34% for the next five years.
Here are the price ratios of the company: The P/E ratio is 23.23, P/S 2.57 and P/B ratio 3.09. Dividend Yield: 1.81%. The beta ratio is 0.71.
3. Lincare Holdings (LNCR) has a market capitalization of $2.11 billion. The company employs 10,225 people, generates revenues of $1,669.20 million and has a net income of $181.57 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $450.96 million. Because of these figures, the EBITDA margin is 27.02% (operating margin 20.02% and the net profit margin finally 10.88%).
The total debt representing 24.17% of the company’s assets and the total debt in relation to the equity amounts to 49.60%. Due to the financial situation, the return on equity amounts to 19.12%. Finally, earnings per share amounts to $1.90 of which $0.40 were paid in form of dividends to shareholders last fiscal. Earnings are expected to grow by 15.67% for the next five years.
Here are the price ratios of the company: The P/E ratio is 12.56, P/S 1.22 and P/B ratio 2.21. Dividend Yield: 3.49%. The beta ratio is 0.64.
4. Mindray Medical Intl. (MR) has a market capitalization of $3.21 billion. The company employs 6,400 people, generates revenues of $704.31 million and has a net income of $155.47 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $190.94 million. Because of these figures, the EBITDA margin is 27.11% (operating margin 23.39% and the net profit margin finally 22.07%).
The total debt representing 0.50% of the company’s assets and the total debt in relation to the equity amounts to 0.60%. Due to the financial situation, the return on equity amounts to 19.35%. Finally, earnings per share amounts to $1.35 of which $0.30 were paid in form of dividends to shareholders last fiscal. Earnings are expected to grow by 15.10% for the next five years.
Here are the price ratios of the company: The P/E ratio is 20.63, P/S 4.22 and P/B ratio 3.03. Dividend Yield: 1.18%. The beta ratio is 1.24.
5. Shire Plc (SHPGY) has a market capitalization of $18.82 billion. The company employs 4,183 people, generates revenues of $3,471.10 million and has a net income of $586.60 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,043.40 million. Because of these figures, the EBITDA margin is 30.06% (operating margin 22.73% and the net profit margin finally 16.90%).
The total debt representing 20.56% of the company’s assets and the total debt in relation to the equity amounts to 45.19%. Due to the financial situation, the return on equity amounts to 26.95%. Finally, earnings per share amounts to $4.07 of which $0.39 were paid in form of dividends to shareholders last fiscal. Earnings are expected to grow by 15.57% for the next five years.
Here are the price ratios of the company: The P/E ratio is 24.64, P/S 5.14 and P/B ratio 7.37. Dividend Yield: 0.48%. The beta ratio is 0.80.
About the author:
I am a private full time investor searching for investments and investment ideas. Visit Dividend's Website





